The Henry M. Wood Company Announces the Addition of Two New Partners

The Henry M. Wood Company (HMW) is extremely pleased to announce the addition of two new partners.

Proudly serving Ohio, Kentucky and Indiana since 1928 and a MANA member since 1948, Henry M. Wood Company has long been the industrial parts manufacturers’ representative who comes up with solutions otherwise thought impossible (or too costly) to achieve. Bringing in two new partners in possession of creative innovation and technical aptitude shall carry this company well into the future.

Brad Bossong has been with HMW since 2011 as an outside sales manager in the Dayton, Ohio area. He has a Bachelor’s degree … Read the rest

Saving the Earth — One Sales Call at a Time

By
image

© 9comeback | stock.adobe.com

We all know the business reasons to sell through multi-line manufacturers’ reps. Things like these:

  • Reps are known and trusted resources for customers in their local territories.
  • Reps help manufacturers avoid fixed costs, like salaries and benefits, of direct salespeople.
  • Reps tend to remain in their territories and work with the same customers for decades, while direct salespeople tend to relocate every few years.

But here’s a new reason to sell through reps: Multi-line reps are fantastic for the environment!

Let me explain. Multi-line reps tend to cover two to three manufacturers’ products during each sales call. If separate direct single-line salespeople had to be sent to call on those same customers to cover the same topics, it would take two to three times the number of single-line salespeople, each working for a single manufacturer and driving their own vehicle.

What happens if twice the number of salespeople and twice the number of vehicles make those same sales calls? If the average salesperson drives 50,000 miles annually, then every time one multi-line rep is replaced by two single-line direct salespeople, it means an extra 50,000 vehicle miles.

The average passenger vehicle emits 404 grams CO2 per mile.1 So, 50,000 extra vehicle miles means 20,200 kilograms more CO2 in the atmosphere annually.

But there is more! Single-line direct salespeople tend to fly more air miles than multi-line reps, perhaps 20,000 miles a year. So, the two single-line direct salespeople in our example would also add 40,000 air miles that would not be flown by multi-line reps. The average commercial airliner emits 184 grams of CO2 per passenger mile,2 so that’s 7,360 additional kilograms of CO2 emissions.

Total environmental impact: 27,560 kilograms of CO2 emissions. That’s 60,760 pounds. Roughly 30 tons. About the same as losing 12 acres of new forest.3

So, selling through reps is not just fiscally responsible, it’s environmentally responsible too! Why would you go to market any other way?


1 https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle
2 http://urbanforestrynetwork.org/benefits/air%20quality.htm
3 https://www.carbonindependent.org/sources_aviation.html

Don’t Forget to Sell to Inside Staff

By

We have all been there — it’s 1:30 p.m., the car is hot, the A/C still cooling down the sweltering interior. The taste of a wolfed-down lunch lingers as you growl at Siri or Google to please dial the correct number. It is Thursday, the customer from this morning’s call is irritated because their shipment is late, and you have approximately 10 minutes to call the factory and try to resolve the late shipment before your 1:45 p.m. conference call which you will take while driving to your next appointment (for which you are already running late due to the … Read the rest

Letter to the Editor

Responding to an e-mail congratulating him on 17 years of MANA membership, rep member Stephen Maier writes:

Mr. Cohon,

Thank you for your kind words, and thanks to you and MANA I was able to retire July 1st. It would not have been possible without the support of your fine organization.

Thank you once again.

Stephen G. Maier
S G M Reps
Jefferson City, MO… Read the rest

Numbers Don’t Spell Success

By

The question of how many agencies a manufacturer should have working for him in the field was raised during a roundtable discussion among manufacturers earlier this year. One manufacturer noted, “The real question shouldn’t be how many agencies you need, but how should the territories you want covered be created?

“It’s not unusual that agent territories that companies wind up with bear little resemblance to the territories the manufacturer had when they were working with a direct sales force. The typical rep has several people out in the field and they usually cover a much larger territory than the single … Read the rest

The Secret to Winning Long-Term in Building Relationships

By

There is an important ingredient you can use in building lasting relationships. Many people talk about building relationships in business, but they often focus more on a transactional nature. This is short-sighted and doesn’t bring about the best results.

We have to plan for what is coming long before it arrives. This time-honored Aesop Fable about the “Wild Boar and the Fox” illustrates the point.

wild boarThe Wild Boar and the Fox

A Wild Boar was sharpening his tusks busily against the stump of a tree, when a Fox happened by. Now the Fox was always looking for a chance to … Read the rest

Sales Reps Should Think About the End at the Beginning

By and

When sales reps enter into a new contract with a principal, they’re understandably most focused on what’s happening right now:

  • Will it be an exclusive?
  • What will the territory be?
  • What will the carve-outs be?
  • What will the commission rates be?

Few sales reps focus on what will happen when the relationship will end. And make no mistake, it will end — the question is when and what will happen when it does.

Fast forward some years, when some of the excitement of the new relationship has subsided. You’ve spent huge amounts of time, money and resources to develop sales … Read the rest

Can You Write Me a Business Plan?

By

Recently I’ve heard from reps who report hearing a new question during line interviews: “Can you write me a business plan?”

image

© Gorodenkoff | stock.adobe.com

Eager to outshine other reps competing for the line, these reps pulled out all the stops to be sure that their in-depth business plans proved their knowledge of their territory and market.

Their business plans detailed all the customers they planned to convert to that manufacturer’s product and the competitors’ products those customers were using. To really impress the manufacturer, sometimes they even reported the prices those customers were paying.

It seemed like a good strategy at the time. But when reps who submitted business plans didn’t get the line, they looked back at the process with mixed feelings.

“We wrote a business plan for a product we don’t currently have on our line card, so if the manufacturer uses that information to sell his products, it won’t actually take any money out of our pockets*.”

“At the time we had an internal discussion about asking the manufacturer to sign a non-disclosure agreement, but it would have thrown cold water on our discussions for sure.”

“In retrospect, we showed the manufacturer way too many of our cards way too soon. If I had it to do all over again, I would give a list of prospective customers but not share any information about the current brands they use or the prices they pay. I would give a total of prospective sales in the territory, but not break it out customer by customer. And I would include a polite footnote indicating that I would share granular details after the rep agreement is signed.”

Have you been asked to write a business plan when you were interviewing for a new line? Did you write one? Did it work out well, or would you do things differently next time? Please e-mail [email protected] to let us know!


* Details may have been added, removed, or altered to protect the privacy of those who share their stories with us and to better illustrate the concepts discussed in this article.

How Blockchain Could Impact the Manufacturers’ Representative and Agent Profession

By

How many times have you encountered a manufacturer’s, customer’s or government’s process and asked yourself, “Why is this process so difficult? Why is this process so bureaucratic? Why is this process making our lives more difficult?”

I have yet to dig into any broken or lengthy process and find that it exists exactly as it was designed many years before. It is always the evolution of sometimes many years of tweaks and changes to cover a perceived weakness or loophole in the original design. Sometimes peeling back the onion and trying to fix it becomes impossible because of the tangle … Read the rest

Valuable Input From a Rep Council

By

A manufacturer that has long depended upon the input it receives from the members of its rep council recently reported what it viewed was some critical advice on the subject of what attributes a manufacturer regional manager should possess. Here’s how the manufacturer stated the results of its most recent council meeting.

“We were at the point of selecting a new regional manager for our rep sales force. Since we have enjoyed such success with our rep council when it came to other matters of importance, we decided to put the question to them as to what they were looking … Read the rest

Robocalls Clog Lines of Communication

By

It wasn’t all that long ago when the bane of our collective existence was the proliferation of “spam” e-mail. At the time, there seemed to be nothing worse than the hundreds if not thousands of unsolicited e-mail messages would clog our personal and business e-mail boxes. Now that that annoyance has a diminished profile it seemed natural that something would take its place. Sure enough — now we have “robocalls.”

In its simplest form a robocall is a phone call using a computerized autodialer that delivers a pre-recorded message. Based on experience, it’s probably a pre-recorded message we don’t want … Read the rest

Don’t Cash That Check!

By

I settled a lawsuit recently which involved a problem that I thought would be of interest to sales representatives.

My client was a golfing buddy of mine from The Detroit Golf Club. He sold automotive production parts. My friend had a long-term relationship with the owner of his principal based in another state. They had been close friends for more than 20 years. The owner decided that it was time to sell the company and to slow down and retire. The assets of the company were purchased by an investment firm located in the Northeast. My client was making a … Read the rest

Important Lesson From World‑Renowned Sales Consultant, Coach, Speaker, Influencer, and Best-Selling Author

By
image

© John Takai | stock.adobe.com

Today a book arrived in the mail. It was written by a “world-renowned sales consultant, coach, speaker, influencer, and best-selling author,” according to the press release that came with the book.

Very quickly, it became obvious that this book illustrated three points worth sharing with MANA members — but not points the author intended.

1. One over-the-top, unsupported claim casts doubt on every other claim you make.

Tony Robbins could claim to be world-renowned without offering supporting evidence. But the author was not Tony Robbins. If you are not a household name and make an unsupported claim to be world-renowned, every other claim you make is tainted.

Reps know that their livelihoods depend on credibility with their customers and principals. We don’t make claims unless we can back them up.

2. Prospective customers don’t appreciate receiving a homework assignment.

A 240-page book and an 8-page press arriving in the mail looks to me like a homework assignment. If the book includes some genuinely unique insights, share a few bullet points in a short note, don’t expect me to search a 240-page book to find them.

Reps know that a brain-dump of all their product’s specifications does not win customers. A short individualized presentation that identifies the specific benefits that particular customer will value is the way reps close orders.

3. You have only seconds to differentiate yourself before losing a prospect’s interest.

I know you have been disappointed by other sales books, but mine is different, claims this author. As claimed by pretty much every other author of every other sales book ever written.

Reps know prospects hear “Our prices are low, our quality is great, and our service is excellent” from every salesperson. So reps do pre-call research to uncover one or two differentiating characteristics of their offering that will be important to this prospect, and leave generalities to the amateurs.

I have never met a rep who was world-renowned. But I have met countless reps who are recognized by customers and principals as the go-to experts in their sales territories. So they are renowned where it counts by the people who matter.

Working With Reps to Develop New Business

By

So you’re a manufacturer and you want to develop new business, grow your sales, perhaps in a new geographic territory, new industry/market, or maybe you have a new product to launch. What are the factors any good manufacturer should consider to maximize the likelihood of success?

Just like when a manufacturer and rep join forces when they first begin working together, developing new business requires setting realistic expectations. The reasons most often cited by manufacturers and reps alike for representation agreement termination has to do with misunderstood expectations by the two parties involved. When you both get it right up … Read the rest

Publicity to the Rescue

By

A manufacturer that joined MANA during the last year was looking for a way to support its newly created rep network’s efforts in the field.

Publicity came to the rescue. In researching how best to communicate its message to prospective customers, the manufacturer located a national trade publication devoted to its industry that was more than willing to publish an article on how this company was introducing its niche product to a new market — via independent manufacturers’ representatives. The only restriction was that this had to be a how-to article, not a commercial. The manufacturer jumped at the chance … Read the rest

Five Networking Nuggets “That Guy” Needs to Know

By

A while back I was attending an annual opening meeting for a marketing group in Orlando, Florida. I love meetings like this where I get to learn about new ideas, listen to great speakers and connect with friends and new acquaintances.

But then, there was “that guy.”

You know the type. This is the kind of guy who thinks a business gathering is all about “getting the word out” about his stuff, what he is doing and what is important to him. Ugh! This guy I met only talked about what he did in his work as a graphic artist. … Read the rest

Accord and Satisfaction: How to Avoid the Surprising Elimination of Your Claims for Unpaid Commissions

By

The Scenario

You had a good year — you finally got that huge OEM account with AcmeCo qualified and the purchase orders are starting to roll in. You figure your hard work over the past 18 months is finally starting to pay off and you’re looking forward to your well-earned reward.

The problem is your principal is starting to think hard about all those commissions you’re about to make. A little friction is starting to build as your principal seems to be a bit slow in making payments on the new AcmeCo purchase orders, making excuses rather than payments. The … Read the rest

My “Eureka!” Moments in Transferring a Business

By

Legend has it that Sicily’s King Hiero of Syracuse once commissioned a new royal crown for himself, for which he provided an ample supply of solid gold for the goldsmith to use. When the finished crown arrived, the good king had suspicions that the goldsmith may have used only a portion of the gold provided, keeping the unused portion for himself and adding sterling silver to balance the crown to the correct weight.

To find out if this was true, the king turned to his jack of all trades, Archimedes — the Greek mathematician, physicist, engineer, inventor and astronomer — … Read the rest

Why There Will Always Be Reps

By

A week of snorkeling and kayaking in the Florida Keys reminded me of one of the reasons there will always be manufacturers’ reps.

Mangroves tressEverywhere the Atlantic met the shore, I saw mangrove trees, and only mangrove trees, thriving in the shallow ocean water.

Why only mangrove trees? Because mangrove trees adapted to thrive in environments that would kill any other tree. Ocean water salty enough to kill any other tree. Ocean tides that would drown any other tree. Waterlogged soil so barren of oxygen it would choke any other tree.

And not only do they thrive in toxic environments, mangrove trees gradually actually make the environment around them better because their massive in-the-water roots slow tidal water just enough to let sediment settle and build soil up around the tree.

Why did mangroves remind me of manufacturers’ reps?

Because savvy salespeople around the world look at their local markets and say: “There may not be enough business here for a factory to base a full-time salesperson locally, or even for a salesperson to stop here very often. But there are definitely orders to be written here.

“A salesperson trying to live off the orders from one factory’s products would starve here, but if I could find 10 or 12 manufacturers who need local sales coverage, I could thrive here.”

So, mangroves and reps both adapt and thrive in environments too harsh for their competition. Too salty, too drastic tides, too little oxygen in the soil for trees that would compete with mangroves. Orders too sparse and too dispersed for direct salespeople who would compete with reps.

That is why there will always be reps. Because while some look at a market and say, “nothing could grow here,” reps look at the same market and see opportunity.

The Benefits of the Cold Calling Process for Your Rep Organization

By

Cold calling — It can seem like an old fashioned and inefficient task. I would imagine that most salespeople enjoy other contact points more than this one. So why do it? When it is used as one of the many methods to interact with customers, I find that there is value in cold calling. I have defined five steps that have helped me over the years put it to good use.

Like all sales tools, you apply it when it can show value in getting you to a specific result. Defining your goal should be your first step; lay out … Read the rest

Correcting Misconceptions

By

When a manufacturer that was considering switching from a direct to an outsourced sales team voiced misgivings about making the move for two major reasons, another manufacturer seated at the roundtable discussion was quick to jump in.

According to the first manufacturer, “I have some serious reservations about whether any rep firm is technically savvy enough to sell my products. On top of that, I’m used to exerting complete control over my direct salespeople. If I make the switch, I’m not going to have that same level of control and I believe that’s going to adversely affect our sales efforts.”… Read the rest

Mini Quiz Reveals What Your Texts, Posts and E-mails Really Say About You

By

In today’s workplace employees spend less time talking and more time e-mailing, texting, and engaging on social media. Ever consider how those messages are perceived by your customers, coworkers, and even by your employer? To ensure your electronic image reflects your best self, take this mini quiz.

1. There’s a big difference in what you officially write at work, vs. comments you post online on your own time.

a) True.
b) False.

Answer: b). While theoretically there may be some anonymity in what you post “privately,” in reality your online presence makes no distinction between your personal and professional image. … Read the rest

Maximizing the Value of Your Rep Firm

By

This article provides the highlights of the MANA special report on valuing your rep firm. You are in the best position to understand the factors impacting the value of your rep firm through your day-to-day management and operation of your agency. Where you and your agency stand on a number of valuation drivers will have a major impact on the cash flow and eventual value of your agency should you ever decide to sell it.

Valuation Drivers

Having good relationships with multiple customers can significantly enhance the value of your agency. A simple phone call may provide you with the … Read the rest

AIM/R Holds Inaugural Rep Advantage Program in 2019

The Association of Independent Manufacturers’ Representatives, Inc. (AIM/R) held a new educational offering called AIM/R Rep Advantage (March 7-8, 2019) in Rosemont, Illinois. In comparison to the AIM/R Annual Conference, the program was a condensed 1.5-day, content-filled, and rep-only event.

2019 AIM/R Rep AdvantageMore than 40 participants seeking training and networking in a rep-on-rep environment in a centralized, smaller venue attended the very first offering. Faculty included members of AIM/R leadership — past and present — and Dirk Beveridge of UnleashWD (www.unleashwd.com) as the opening keynote.

Topics addressed included the following: innovation, buyouts/mergers, warehousing and turns, apps to better run your business, managing … Read the rest

We’re Better Together

By
image of golf bag

© Photocreo Bednarek | stock.adobe.com

Golfers wouldn’t dream of hitting the links with just irons or just woods in their bags. Many manufacturers’ representatives feel the same way when it comes to the rep associations that support them in their profession. Let me explain.

MANA is a horizontal rep association, so we focus on rep and manufacturer resources that can be applied to any industry that uses outsourced sales forces.

Because MANA can serve all reps and manufacturers who use reps, we have thousands of members. Thousands of members means we have the budget, for example, to invest very heavily in RepFinder® rep/manufacturer matchmaking tools and print Agency Sales magazine every month.

Vertical rep associations focus on rep resources for one particular industry. Many times this is a conference specifically for reps in that particular industry.

Six vertical associations now purchase MANA memberships for all their rep members, giving their rep members the very best of both horizontal and vertical rep association resources.

  • AIM/R, Association of Independent Manufacturers’ Representatives, Inc., plumbing, HVAC/R, kitchen/bath, waterworks, irrigation and related industries.
  • HDMRC, Heavy Duty Manufacturers’ Representatives Council, commercial vehicle supplier industry.
  • IHRA, International Home + Housewares Representatives’ Association, home, housewares, gourmet, giftware, consumer electronics & hardware industries.
  • ISA, Industrial Supply Association, the association for the industrial Maintenance Repair Operating and Production (MROP) channel.
  • NMRA, National Marine Representatives’ Association, marine industry.
  • PTRA, Power-Motion Technology Representatives’ Association, power transmission and motion control industry.

From all of us at MANA, hats off to the leadership of these six associations for having the vision to be sure their members have both irons and woods in their bags, to help them to effectively manage their professional manufacturers’ representative firms.

Continue to Explore

By

A recent film, Arrival, presented a tale of potential catastrophe from disruptive change requiring massive adaptation. Aliens have suddenly arrived on earth, their presence mysterious: potentially benign but possibly threatening.

Confronted with a new normal, we had to find the right people with the proper abilities to adapt. The aliens offered us a “gift,” but we had to translate their reality to ours. We argued among ourselves whether that the gift was a tool or a weapon.

Ultimately, in the movie, we learn the gift was a tool, and that tool was the alien language and alien sense of … Read the rest

Book Review

This is the first of a series of book reviews by Peter Scholtens on subjects of interest to manufacturers’ reps that will occasionally appear in Agency Sales.

image of book coverEat Their Lunch: Winning Customers Away From Your Competition
by Anthony Iannarino
Hardcover: 240 pages
Publisher: Portfolio (Nov. 6, 2018)

While the title may not indicate it, Eat Their Lunch is a book about how to deal with a sales world that is becoming increasingly polarized. Right now, the push in sales is to try to automate everything. Because the B2C world is thriving on making everything a click away, sales leadership … Read the rest

Lessons Learned From Being a Manufacturer

By

One of the more common paths to follow on the way to becoming an independent manufacturers’ rep is to start as a manufacturer. Two manufacturers who followed that path compared notes at an industry meeting earlier this year and there were two areas in which they credited their former careers for providing them with some valuable knowledge.

In the area of being able to truly understand what the rep does, one rep emphasized, “One thing I’ll never forget is the fact that the rep owns the customer. That’s why when we made the move from a predominately direct sales operation … Read the rest

The Top Requirements for Becoming a Great Salesperson

By

If you’re young enough, some of the questions in the first few paragraphs that follow won’t apply because you haven’t experienced the world without the innovations mentioned below. Don’t let that prevent you from reading this, because after the milestones, we’ll get to the good selling stuff.

For those of you who are my age or older, do you remember the first time you saw color TV? For me it was the Tonight Show with Johnny Carson in the early 1960s. Or the first time you watched cable with more than six channels and without snow? Wireless remote controls? OK, … Read the rest

Change of Control: How to Make Your Business More Valuable by Planning for Your Manufacturers Being Sold

By

In the 72 hours before I sat down to write this article, the owners of three different sales representative agencies called me with concerns because one of their manufacturers was being purchased. These acquisitions often take sales representatives by surprise, asking themselves what rights they have and what will happen next.

What to do and not to do when one of your manufacturers is sold will be the subject of a future article for Agency Sales. But the purpose of this article is to get you thinking about how to anticipate the possibility of your manufacturers getting sold, plan … Read the rest